MSIS 3223 EXAM 1 PRACTICE SOLUTION
TESTED QUESTIONS AND CORRECT
ANSWERS ALREADY PASSED RESOURCE
●● Mean (Arithmetic Mean)
Answer: Sum of observations divided by the number of observations;
affected by outliers.
●● Median
Answer: Middle value when data are arranged from least to greatest; not
affected by outliers.
●● Mode
Answer: Observation that occurs most frequently; most useful when few
unique values exist.
●● Midrange
Answer: (Maximum + Minimum) ÷ 2; highly affected by outliers and
used occasionally.
●● Outlier
Answer: An extreme value that differs significantly from other
observations.
,●● Dispersion
Answer: Degree of variation or numerical spread in data.
●● Range
Answer: Maximum − Minimum; easiest measure of dispersion.
●● Interquartile Range (IQR)
Answer: Q3 − Q1; measures middle 50% of data.
●● Variance
Answer: Average of squared deviations from the mean; depends on all
data points.
●● Standard Deviation
Answer: Square root of variance; popular measure of risk in financial
analysis.
●● Large Variance
Answer: Indicates data are more spread out from the mean.
●● Small Variance
Answer: Indicates data are clustered near the mean.
, ●● Skewness
Answer: Measure of asymmetry in data distribution.
●● Positively Skewed (Right-Skewed)
Answer: More mass on left, tail extends right.
●● Negatively Skewed (Left-Skewed)
Answer: More mass on right, tail extends left.
●● Coefficient of Skewness
Answer: Measures degree of asymmetry around mean.
●● Kurtosis
Answer: Measure of peakedness or flatness of a histogram.
●● Histogram
Answer: Graphical depiction of a frequency distribution using columns.
●● Statistical Relationship
Answer: Two variables move together.
TESTED QUESTIONS AND CORRECT
ANSWERS ALREADY PASSED RESOURCE
●● Mean (Arithmetic Mean)
Answer: Sum of observations divided by the number of observations;
affected by outliers.
●● Median
Answer: Middle value when data are arranged from least to greatest; not
affected by outliers.
●● Mode
Answer: Observation that occurs most frequently; most useful when few
unique values exist.
●● Midrange
Answer: (Maximum + Minimum) ÷ 2; highly affected by outliers and
used occasionally.
●● Outlier
Answer: An extreme value that differs significantly from other
observations.
,●● Dispersion
Answer: Degree of variation or numerical spread in data.
●● Range
Answer: Maximum − Minimum; easiest measure of dispersion.
●● Interquartile Range (IQR)
Answer: Q3 − Q1; measures middle 50% of data.
●● Variance
Answer: Average of squared deviations from the mean; depends on all
data points.
●● Standard Deviation
Answer: Square root of variance; popular measure of risk in financial
analysis.
●● Large Variance
Answer: Indicates data are more spread out from the mean.
●● Small Variance
Answer: Indicates data are clustered near the mean.
, ●● Skewness
Answer: Measure of asymmetry in data distribution.
●● Positively Skewed (Right-Skewed)
Answer: More mass on left, tail extends right.
●● Negatively Skewed (Left-Skewed)
Answer: More mass on right, tail extends left.
●● Coefficient of Skewness
Answer: Measures degree of asymmetry around mean.
●● Kurtosis
Answer: Measure of peakedness or flatness of a histogram.
●● Histogram
Answer: Graphical depiction of a frequency distribution using columns.
●● Statistical Relationship
Answer: Two variables move together.
